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Overview - Northern Great Plains Regional Authority

2007-11-04

Northern Great Plains Regional Authority

Overview

Under the Farm Security and Rural Investment Act of 2002 (the farm bill), Congress establishes the Northern Great Plains Regional Authority “to provide assistance in (A) implementing the recommendations of the Northern Great Plains Rural Development Commission; (B) acquiring and developing land; (C) constructing or equipping a highway, road, bridge or facility; (D) carrying out other economic development activities; or (E) conducting research activities described in (A) through (D).”  The Authority is required to allocate “at least 75% of any appropriations made available under section 383M” of the farm bill “for programs and projects designed to serve the needs of distressed counties and isolated areas of distress in the region.”  The Authority covers the five states of Iowa, Minnesota, Nebraska, North Dakota and South Dakota.  No state is required to participate in the Authority.  The Authority is authorized for fiscal years 2002 through 2007.

Duties

The Authority shall:

  1. develop comprehensive and coordinated plans and programs to establish priorities and approve grants for the economic development of the Region;
  2. establish priorities in a development plan for the Region;
  3. assess the region's needs and assets;
  4. formulate and recommend to the Governors and Legislatures of participating states forms of interstate cooperation;
  5. work with State, tribal, and local agencies in developing appropriate model legislation;
  6. enhance the capacity of and support local development districts in the Region and if no local development district exists in an area in a participating state in the Region, foster the creation of a local development district;
  7. encourage private investment in industrial, commercial, and other economic development projects in the Region; and
  8. cooperate and assist State governments with economic development programs of participating States.

Regional and State Plans

The Authority is required to establish priorities for funding within a development plan for the entire Region.  This plan must include 5-year regional outcome targets.  Each State is required to submit to the Authority a development plan for the area represented by that State.  The state development plan must reflect the goals, objectives, and priorities identified in the regional development plan.

Powers

The Authority may:

  1. hold hearings, take testimony, receive evidence, and print or otherwise reproduce proceedings and reports on the Authority’s action as appropriate;
  2. receive testimony under oath;
  3. request from any Federal, State, tribal or local agency such available information that may assist the Authority in carrying out its duties;
  4. adopt, amend, and repeal bylaws and rules governing the conduct of business and the performance of duties of the Authority;
  5. request the loan of personnel to the Authority from Federal and State agencies, tribal governments, or local governments;
  6. provide for coverage of Authority employees in a suitable retirement and employee benefits system;
  7. accept, use, and dispose of gifts or donations of services or real, personal, tangible, or intangible property;
  8. enter into and perform such contracts, leases, cooperative agreements or other transactions necessary to carry out Authority duties; and
  9. establish and maintain a central office and field offices at such locations as the Authority may select.

Governance

The governing board of the Northern Great Plains Regional Authority will be composed of:

  1. a federal member to be appointed by the President and confirmed by the Senate;
  2. the governor of each state in the Region that chooses to participate (and which contributes to the administrative expenses of the Authority); and
  3. the Chairperson of an Indian tribe in the region to be appointed by the President and confirmed by the Senate.

Cochairpersons

The federal member shall also serve as cochairperson of the Authority and as a liaison between the federal government and the Authority. A governor will be selected by participating governors to serve as the State cochairperson. The tribal representative will also serve as a cochairperson and as the liaison between the Tribal governments and the Authority.

Voting

Each Authority member will have a vote and a simple majority will decide issues (not including any member representing a State that is delinquent in its contributions to the administrative expenses of the Authority).

Economically Distressed Counties

The Authority is required to annually, using its own criteria, to designate:

  1. distressed counties in the region that are the most severely and persistently distressed;
  2. nondistressed counties; and
  3. isolated areas of distress that are located within nondistressed counties.

Operations

The Authority may appoint an Executive Director and other personnel as are necessary to carry out the duties of the Authority.

Administrative Expenses

The federal share of administrative expenses in year one is 100 percent, and then decreases to 75 percent in year two, and to 50 percent for each year thereafter.  The non-federal share of the administrative expenses of the Authority shall be paid by non-federal sources from the member States.  The share of administrative expenses to be paid by the States will be determined by the Authority.  No more than 5 percent of the annual Federal appropriation may be used for administrative expenses.

Delinquent States

If a State is delinquent in payment of that State’s share of administrative expenses of the Authority neither it nor any political subdivision or resident will be eligible to receive assistance from the Authority.

Northern Great Plains Inc.

The Northern Great Plains Inc, a nonprofit corporation established to implement the recommendations of the Northern Great Plains Rural Development Commission, has been designated to:

  1. serve as an independent, primary resource for the Authority on issues of concern to the region;
  2. advise the Authority on development of international trade; and
  3. provide research, education, training, and other support to the Authority.

Appropriations

Congress is authorized to appropriate up to $30 million within the Department of Agriculture for each of the 5 years of the Authority’s authorization.  Appropriations will be subject to congressional approval each year.  The funds will be available until expended.

Allocation of Appropriations

  1. At least 75 percent of the appropriations made to the Authority shall be awarded to programs and projects in distressed counties and isolated areas of distress in the region.  Project dollars can be spent in nondistressed areas for multicounty projects that include distressed counties or for projects that could bring significant benefit to areas of the region outside a nondistressed county.
  2. At least 50 percent of the appropriations made to the Authority shall be awarded for transportation, telecommunications, and basic public infrastructure projects.
  3. Each participating State shall receive a minimum share not less than 1/3 of the product obtained by multiplying the total grants made in a year and the ratio of that state’s population to the total population of the region.

The Authority may receive project funding from additional sources including other federal departments, States, or foundations.

Grant Making and Funding Priorities

The Authority must prioritize use of federal funds in the following order:

  1. basic public infrastructure in distressed counties and isolated areas of distress;
  2. transportation and telecommunication infrastructure for the purpose of facilitating economic development in the Region. (Grants for this purpose may be made only to States, Indian tribes, local governments, and nonprofit organizations.);
  3. business development, with emphasis on entrepreneurship; and
  4. job training or employment-related education, with emphasis on use of existing public educational institutions located in the Region.

Approval of Projects

Project or grant proposals must be submitted to the State member for review and approval. The state member can then certify the project to the Authority. A majority vote of the Authority is required for the final approval.  No state is required to accept any program for Authority funding without its consent.

Project Development Criteria

In considering programs and projects to be provided assistance, the Authority shall consider the following:

  1. the relationship of the proposed activity to overall regional development;
  2. the per capita income and poverty and unemployment and outmigration rates in an area;
  3. the financial resources available to the applicant to carry out the project with emphasis on ensuring there are adequate financial resources in order to maximize the probably of success of the project;
  4. the importance of the project in relation to other projects that may be competing for funds;
  5. the potential for the project to improve on a continuing basis the opportunities for employment or economic development; and
  6. the ability to measure the impact of the project.

Development Districts

At the local level, development districts will operate as the lead organizations serving multi-county areas and also serve as a liaison between the State, tribal and local governments, nonprofit organizations, the business community and the public. The Authority may make grants to certified local development districts for administrative expenses up to 80 percent of the administrative expenses of the development district receiving the grant.  The Authority is expected to use existing planning districts recognized by EDA, or organizations governed by a policy board with at least 50 percent of local government representation, as local development districts.